o Required information of 3 Exercise 5-13B Compare the allowance method and the direct write-off method (LO5-6) (The following information applies to the questions displayed below.] At the beginning of Year 1, a company has a balance of $25,300 in accounts receivable. Because the company is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of Year 1, the company wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that the company now will need to use the allowance method. The following transactions occur during Year 1 and Year 2. Book Hint Ask 1. During Year 1. insta air conditioning systems on ac nt, $183,000. 2. During Year 1, collect $178,000 from customers on account. 3. At the end of Year 1, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In Year 2, customers' accounts totaling $7,300 are written off as uncollectible. erences Exercise 5-13B Part 1 Required: 1. Record each transaction using the allowance method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Part 1 of 3 Journal entry worksheet 0.72 points 1 3 4 eBook At the end of Year 1, estimate that uncollectible accounts total 20% of ending accounts receivable. Hint Ask Note: Enter debits before credits. References Transaction General Journal Debit Credit 3 Bad Debt Expense 5,160 Allowance for Uncollectible Accounts 5,160 Record entry Clear entry View general journal Mc Graw